Step-Up SIP: ₹10,000/Month for 20 Years (10% Step-Up)
Calculate the maturity value from a ₹10,000 per month SIP with a 10% annual step-up over 20 years at an illustrative 12% return. Calculated with an annual step-up rate of 10% and an illustrative 12% p.a. expected mutual fund return.
Adjust Parameters
Starting monthly installment for Year 1.
Typically corresponds to your expected annual salary raise (e.g. 5% to 15%).
Expected average annualized return on diversified equity funds.
Final monthly installment: ₹61,159
Step-Up Invested Capital vs Returns
Total: ₹1,98,88,715| Category | Amount | Percentage |
|---|---|---|
| Total Invested | ₹68,73,000 | 34.6% |
| Estimated Wealth Gained | ₹1,30,15,715 | 65.4% |
Step-Up SIP vs Regular Constant SIP Comparison
Direct comparison of increasing your investments alongside career growth versus leaving your installment fixed.
| Strategy | Initial Monthly | Final Monthly | Total Invested | Maturity Corpus |
|---|---|---|---|---|
| Step-Up SIP (+10%/yr) | ₹10,000 | ₹61,159 | ₹68,73,000 | ₹1,98,88,715 |
| Regular Constant SIP (Flat) | ₹10,000 | ₹10,000 | ₹24,00,000 | ₹99,91,479 |
| Step-Up Advantage | - | +₹51,159 | +₹44,73,000 | +₹98,97,236 |
Year-by-Year Step-Up Progression Schedule
| Year | Monthly Deposit | Invested in Year | Cumulative Invested | Total Wealth Gained | Year-End Corpus |
|---|---|---|---|---|---|
| Year 1 | ₹10,000 | ₹1,20,000 | ₹1,20,000 | ₹8,093 | ₹1,28,093 |
| Year 2 | ₹11,000 | ₹1,32,000 | ₹2,52,000 | ₹33,241 | ₹2,85,241 |
| Year 3 | ₹12,100 | ₹1,45,200 | ₹3,97,200 | ₹79,210 | ₹4,76,410 |
| Year 4 | ₹13,310 | ₹1,59,720 | ₹5,56,920 | ₹1,50,403 | ₹7,07,323 |
| Year 5 | ₹14,641 | ₹1,75,692 | ₹7,32,612 | ₹2,51,958 | ₹9,84,570 |
| Year 6 | ₹16,105 | ₹1,93,261 | ₹9,25,873 | ₹3,89,861 | ₹13,15,734 |
| Year 7 | ₹17,716 | ₹2,12,587 | ₹11,38,461 | ₹5,71,066 | ₹17,09,527 |
| Year 8 | ₹19,487 | ₹2,33,846 | ₹13,72,307 | ₹8,03,649 | ₹21,75,956 |
| Year 9 | ₹21,436 | ₹2,57,231 | ₹16,29,537 | ₹10,96,964 | ₹27,26,501 |
| Year 10 | ₹23,579 | ₹2,82,954 | ₹19,12,491 | ₹14,61,835 | ₹33,74,326 |
| Year 11 | ₹25,937 | ₹3,11,249 | ₹22,23,740 | ₹19,10,776 | ₹41,34,516 |
| Year 12 | ₹28,531 | ₹3,42,374 | ₹25,66,114 | ₹24,58,228 | ₹50,24,342 |
| Year 13 | ₹31,384 | ₹3,76,611 | ₹29,42,725 | ₹31,20,840 | ₹60,63,565 |
| Year 14 | ₹34,523 | ₹4,14,273 | ₹33,56,998 | ₹39,17,792 | ₹72,74,790 |
| Year 15 | ₹37,975 | ₹4,55,700 | ₹38,12,698 | ₹48,71,151 | ₹86,83,849 |
| Year 16 | ₹41,772 | ₹5,01,270 | ₹43,13,968 | ₹60,06,288 | ₹1,03,20,256 |
| Year 17 | ₹45,950 | ₹5,51,397 | ₹48,65,364 | ₹73,52,344 | ₹1,22,17,708 |
| Year 18 | ₹50,545 | ₹6,06,536 | ₹54,71,901 | ₹89,42,762 | ₹1,44,14,663 |
| Year 19 | ₹55,599 | ₹6,67,190 | ₹61,39,091 | ₹1,08,15,900 | ₹1,69,54,991 |
| Year 20 | ₹61,159 | ₹7,33,909 | ₹68,73,000 | ₹1,30,15,715 | ₹1,98,88,715 |
A Step-Up SIP addresses one of the fundamental flaws of traditional investing: leaving contributions static while your earnings expand. Starting at ₹10,000/month and increasing it by 10% annually results in a final monthly deposit of ₹61,159 in year 20. This disciplined step-up approach generates an additional ₹98,97,236 in maturity wealth compared to a fixed flat SIP of ₹10,000. Although your cumulative invested capital is higher by ₹44,73,000, the extra returns generated substantially outpace the extra contributions. Because the step-up happens once every 12 months, your monthly contribution increases systematically at each annual anniversary, accelerating compounding without requiring manual calculation changes during intermediate months.
How Step-Up SIP Compounding Works
Transparent mathematical formulas and assumptions used across our financial engines.
Variables & Legend
Increases by the step-up percentage every 12 months
Annual rate (12%) ÷ 12 ÷ 100
+10% applied annually at months 13, 25, 37...
Conventions & Assumptions
- Compounded on a month-by-month discrete simulation basis with monthly contributions credited at month start.
- Step-up is applied at the beginning of each 12-month interval, mirroring typical Indian corporate annual appraisal cycles.
- Illustrative calculations assume consistent annual return performance across the holding period.
Frequently Asked Questions
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